2012, and "squawk box" begins right now. i'm becky quick along with joe kernen and andrew ross sorkin. sandy still packing a punch. more than 7 million people currently without power from north carolina through connecticut. there are more than 2 million people in new jersey alone without power today. we'll get an update on the you power situation in new jersey with the president of pse&g, they have 1.2 million customers without pow person by the way, the president is just declaring a state of emergency in new york city. this is something that will free up more federal funds for people here in long island and in new york city and we will have more on that in just a moment. also coming up in the next half hour, we have delaware governor jack markell. we'll get his assessment of the damage to his state and dennis gartman will talk energy and

commodity trading. >> lots of damage to report in the new york city area, more than 50 homes were destroyed by fire last night in breezy point queens. just east of cone any islands, more than 170 firefighters were on the scene. and separately more than 200 patients were evacuated last night from new york university's medical center after power went out. patients some on respirators operating on battery power were taken to other hospitals. and check this video out. a crane on this luxury high rise building, that's under construction, topping over on 57th street, the 90 story building looks over central park. luxury apartments telling for tens of millions of dollars. the crane could be seen blowing in the wind for most of the night and officials there trying to figure out how to get that down eventually.

>> to find out how much rain and wind sandy will be packing and where it's heading next, jen carfagno has the forecast. >> between morning. so we are still dealing with central winds of 65 miles an hour with the super storm sandy. the pressure is coming up a bit. now to 960. as the pressure comes up, the winds will relax, but most of today, we'll be dealing with strong and potentially destructive winds plus the rainfall is out there and the snow continuing to develop. here's where the rain is, on the light are side across pennsylvania and into virginia, but still falling nonetheless. and then heavy snow in west virginia and lighter snow and getting blown around in ohio. these are some of the peak wind gusts that we have seen. atlantic city gusted at 64 plrn. one of the highest in fact the second highest wind gust we saw 90 miles an hour.

96 up in rhode island. we'll see on the order of 2 to 3 inches of rain across pennsylvania, new york, perhaps into ohio, as well, but up into new england, this is a concern today that we have for thunderstorms. we may see thunderstorms with damaging winds and we also may see the isolated risk of tornadoes, as well. plus the heavy rainfall concern up there. that will be today's risk. and then the wind threat, as well, high wind warnings continue. through about mid-morning to noon depending on the local area. also lake erie had been continuing to get water over the interstate because of that. so the high wind warnings plus the snow we've had now, 18 inches in davis, west virginia and more to keep on falling. let's talk about the new york stock exchange trading floor did survive the night. there was no flooding or damage. but a lot more going on and we want to talk to bertha coombs

who joins us with more on what's ahead for the markets. >> yeah, last night the nyse take to go twitter to dismedical rumors that the floor was under water. you can see it is dry here. plenty of sand bags. later on this morning, the nyse, the nasdaq and exchanges will all try their contingency systems. the ncht yse will do that test between 8:00 a.m. and noon. they will do it open at 9:30 and then a closing at 12:00. they do expect and hope to be open tomorrow. but what you have to look at is the rest of the infrastructure here in lower manhattan. last night, we had a substation blow on east 14th street in the lower part of manhattan and that set off a major power outage, all of manhattan below 39th street is without powers as of last night. and i will tell you it was a very frightening sight driving downtown to try to get done here

to get here. hotels down here have no power. so there may have been some folks who actually were in the area and stayed in hotels to be near here, but beyond that, you also don't have any transportation infrastructure. everything, eight bridges and all tunnels coming in to man at that time manhattan remain closed. you have accept subway tunnels that have been flooded. so public transportation system remains closed. they will assess the damage after daylight. mayor bloomberg will hold an update at 9:00 a.m. and we'll get a better assessment as to whether people can move in and around the city this morning. in queens as you all mentioned last night, we had a fire in breezy point queens. it went to six al lamps. more than two dozen homes destroyed. that's the situation that we're

seeing. and even in areas where there isn't damage, there are a lot of tree limbs down and so pre-care just to be out and about. upper manhattan at bet better, but when you get into the outskirts and certainly here in lower manhattan, it is very can desolate. i've never seen it like this even during the blackout in 2003. >> thank you. please stay safe. a numb portfolio managers say if you can't close out some of these months, it bbs complicated. >> i believe the opening will be at 9:30 this morning to be testing that situation. they'll be running the close at noon. and again, this is just a test to make sure the systems are all operational before tomorrow. it's not just morning city. the jersey shore also taking a

pounding. kayla tausche is in cape may this morning. what's the situation there? >> physicians here in cape may feel like at least this town dodged a balance let with sandy making direct landfall just north of here. within an hour, the rains had slowed even though the wind kept up and we thought the world was over, but an hour later, we realized it was just the eye had passed and sustained winds are still pretty present here in southern new jersey. a quarter of the population is left without power. lnlg southern new jersey still under flood warnings. barrier islands all disconnected nearly from the mainland and

atlantic city probably sustaining the worst flooding along with ocean city. we saw significant flooding in hoboken closer to new york city, as well. atlantic city, the situation was incredibly desire and last night governor chris christie made harsh words about those who chose not to evacuate. and saying the mayor had gone rogue and heeded people that can't need to heed. christie saying if you were stranded in atlantic city, you had to wait until daylight to be rescued. they just could not send emergency responders. and you can tell by the fact that even two dozen people who were at shelters had to be evacuated from the shelters because the flooding and the situation there got so bad. now of course overall, we'll have to wait until daylight for the damage lear to be assessed. we have high tide in just a few

more hours which could possess more flooding risk, but people think the swors ovworst is over. >> we're glad you're still safe there. 8:37 is high tide and that is expected to bring more concerns about flooding. we'll check back in with her later this morning. the new york stock exchange and nasdaq will both be completely shut down for a second day in a row. the bond markets are closed today, as well. futures are continuing to trade. those prices will be up-to-date. futures this morning for the dow, nasdaq, s&p, those are all trading unlg 9:15 a.m. is this the first time weather related issues have closed it since 1988. apparently there were snow drifts about 40 feet high back in 1988. but the situation here is rocky.

there are contingency plans being set up to resume trading tomorrow. and as you mentioned, it's a key day to do it, last day of the month. a lot of people who need to get those trades in, a lot of concerns. that would be three days in a row. >> let's look at the world markets this morning. futures are still trading until 9:15. and -- >> the market not very wlik wid right now. but we do have confirmed that the boards are good and trading is open. >> but not much happening. oil, i guess it's the idea of -- now i guess it's up a little, but it hasn't spiked and it was actually weak frer time to time. maybe it's based on knock out the power of 4 million people or whatever it is. and --

>> you'll see a dip in consumptico consumption for several days. >> as far as the dollar, you figure forex markets won't be as affected and there it is, the euro about 1.29. gold has ban hovering around the low 1700s. it's up $5 today. >> it's time for the global markets report. kelly, we've been watching your markets to get an idea of how people are feeling this morning. what's the sense you have? >> absolutely. and i'm surprised to say, but actually better earnings news helping to bolster european stocks this morning. stoxx 600 up about 0.6%. yesterday was a weaker session, but we can take a look at the sectors. banks surprisingly have been among the better performers. doichl bank among those reporting earnings helping to keep a floor below shares. over here, oil and gas up nearly 2%. autos 1.4%. porsche among those with shares

that are up. i think we have the financials here, insurance 1.2%, this is the one i wanted to focus on. we can show you some of the big names. traveler travelers does trade in frankfurt, its shares were just down about half a percent. they've lost 3% of their value over the last seven days. p travelers property and casualty with a big exposure to the sandy area. here's the reinsurers. you munich being the biggest. others bouncing back. two factors at play. one results better than expected. asset management business in particular has helped lift the sector. secondly, a lot of people thinking that the selloff might have been premature because if anything, property rates may be headed higher, meaning the market may continue to firm now on the back of the storm that has hit. it's a double whammy for households, but it may mean somewhat better results as they

continue to work on pricing. quick check on the european bourses. mostly in the green here. seeing gains in the range of 0.6% to 0.9%. bond wall, quiet her. investors moving in to spain and italy. finally just forex, bank of japan disappointed. investors wanted to see more. this despite the fact they've gone on two quantitative easing programs in two months. that still wasn't enough. the dollar yen is sinking half a percent done this morning. bank of china in the market with record amounts of liquidity injections. these are the layses s places focus on. broadly speaking the tone is better than yesterday and it helps perhaps that as people are trying to get a sense of the damage from sandy, it may not be as bad as some of the worst case estimates. back to you. >> we can certainly hope so.

thank you. coming up, getting the markets open for wednesday. should investors expect a selloff when we finally do get the markets open as the month draws to a close. and it won't ebe halloween tol p tomorrow. i think we'll put it off. >> and governor christie will be speaking at 10:00. mayor bloomberg at 9:00 to give us an update. hopefully some of the rescue separations can continue. >> halloween is not -- >> chris christie said he is. if it looks like it's a dangerous situation, he said yesterday he will move halloween to another day. >> sandy leaves hundreds of thousands without power along the east coast including nearly 1 million along long island. we'll have a live report from montouk. man these guys are slow.

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taking a live look at the capitol. president returning there after an aborted trip to florida. u.s. equity futures, read arrows across the board. but those numbers not moving much. also taking a look at crude

given what's going on and that has gone up marginally, 85 to 76. although i here already talk of gouging pe pump. joining us is a partner and portfolio manager at douglas lane an associates. when you think about the market opening tomorrow, what are the big issues to take into consideration? >> i think people will see macro issues first. oil and gas, will it be transportation. our view is short term yes, but longer term, things will get back to normal. so the focus will be elections, fiscal cliff, but more for us is more earnings.

>> how important is getting trading back up tomorrow? >> it is important. people want to see trading does occur. yes, very important especially as positions for hedge funds and other people start closing out and in values, too. everyone wants to vol their pal portfolios at the end of the month. >> anything to worry about or consider if it becomes an electronic trading situation on the bigboard? >> i think it will be interesting to see if there will be any glitches going forward, but i don't think so. i think they have a whole day today to figure this out. it sounds like the backup systems are in place. any particular stocks or investment themes in the contest

of the storm that you're thinking about as a result of all this? >> if you say what needs to be replaced, what are things that people used so that you can go to the manufacturing side, generation side, companies like general election, emerson electric, which might get a short bump up in demand. on the other side, the speculation in the short term, do energy prices spike. we don't though yet. it's all over the place. so maybe over the couple week, there will be some volatility, but long term, they all work themselves out. >> some of the companies will have exposure and get to raise their premiums after a situation like this. >> so you get the complete

offset there because if they've already allocated reserve for it, then the stocks will discount it pretty well, but on the other side, when people come up for reinsurance again especially along the coast, prices will be much more firmer i think companies look at that discounted as well, so sfok appli stock prices will be higher than expected. >> we were looking at whether or not the stock exchange can open tomorrow. i think the plan is to do that, but they'll be testing the arca system in case it can't get the trading floor open. is that a situation as an investor that you worry about are on you figure this is a situation that he's pretty tightly under control either way? >> i think it's pretty tightly under way given the history of what they've gone through, this would not surprise me that they've already got the backups in there.

but you have nasdaq and other things. it's not the end of the world. >> tune any portfolio managers that are playing the futures market in the u.s. right now? >> i think the only people that people who need to put money to work to balance portfolios. maybe insurance companies that have liabilities that they want to match. but other than that, it's not very liquid, so you won't have real prices because people aren't sure where the trades are going. >> thank you for joining us this morning. please stay saefr. >> a chart back on october 1st, much better than expected -- you

can see right at the o there.sa. >> a chart back on october 1st, much better than expected -- you can see right at the o there.fs. >> a chart back on october 1st, much better than expected -- you can see right at the o there.es. >> a chart back on october 1st, much better than expected -- you can see right at the o there.. >> a chart back on october 1st, much better than expected -- you can see right at the o there. much better than expected results. this company makes backup power systems. ron baron has been an early investor in this company. the minute the power turns out, it turns out automatically. >> in full dislow sure, our family put 50% down on one of these last week. we won't get it for a few weeks. we're wishing we had done it sooner. >> natural gas, so you don't have to keep putting it in hour by hour. and the minute we were there, we had power for a long time, but -- >> did you lose power last night in. >> the lights were flickering. but knowing that we had that as a backup feels good. then the entire neighborhood went out and continues to be out. there's no lights anywhere in the entire neighborhood. and it started up.

having one light and having the gar wanlg disposal still work, like we had nine days twice last year where it was nine days where you didn't -- that's what generac said. there were so many times where there were extended power outages that more and more people are doing this. for nine days i walked in to the bathroom and switched the light on every single time because it's dark in there. >> one benefit of no you power is that there's no television so you go bed earlier. >> it means the ipads that were charged, there's a slight dim from the side of the bed where the kids are -- >> people watching movies on ipads at the hoe tel last night. p.

>> they run through the batteries quickly. >> they do. but verizon was working. so you could get high speed internet. >> that defeats the purpose, you go to the hotel and it has no power. what floor were you on? >> 14th floor. but the operators did operate. i did walk up and down a couple times, but -- they had backup power. >> don't trust the backup power. >> and we had a fire alarm at 1:00 a.m., 12:30. so a long evening. >> hearing the trees all around and you don't know when one is -- last time one hit my house. >> i know. >> you worry about all the people that are out there. >> you worry about where you park your car. first i had them huddled in front toying and i'm like why am i putting them right next to each other? so then i spread them out. >> anyway, it is a situation we are still waiting to see how much damage is out there waiting

for first light this morning to get a better assessment of things. when we come back -- >> did you hear what the hair tweeted? joe kernen's hair? joe kernen's hair one, sandy zero. should i retweet that? i might retweet that. in your case, you just don't shower. >> let's be honest. there was no power in the bathroom, so i washed my hair in the sink this morning. >> did you brush your teeth? >> i did. >> doesn't seem like it over here. >> you're so far away. >> this is a situation where -- >> if that's our worst problem, yeah. >> there are bigger problems out there and we are still trying to assess the damage. when we come back, we'll talk about sandy leaving hundreds of thousands without power. in fact i believe it is millions who are without power. at 6:50 a.m., delaware governor jack markell will give us an

update on his state. and phil lebeau has a live update on the situation in the skies and just how difficult it will be. by the way, this is a live shot of road islands also dealing with flooding from sandy. this is all up and down the east co-at this point. lots of pictures out there p. we'll continue to look through some of these. ♪ one on the left and one on the right ♪

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quick and andrew ross sorkin. the east coast is waking up a huge mess. probably as many as 50 million people affected by just the shear size of the storm. let's find out how much rain an wind that sandy will be packing for the rest of the day and where it is headed next. jen carfagno joins us again. >> this is not over with yet. yes, today's conditions are better than yesterday's, but it's still tough out there and a couple and he woulded dimensions. first off with super storm sandy, 960 millibar pressure, winds of 65-mile-an-hour and it is moving now to the west. you'll notice all the rain, the rain in maryland and virginia, pennsylvania, new jersey, getting a real steady soaking. but the snowfall is really starting to pick up a bit. we could see snowfall rates even in ohio not just in the

mountains of 1 to 2 inches per hour and that could cause travel issues. temperatures in the low 30s. you get enough snow at that rate, it can accumulate even on the roadways. so that's an issue. with the accumulating snowfall especially at elevation, we're expecting here an additional foot plus in some of the highest he will indications here. he will continues, west virginia, the entire town without power because of snow and wind that we've seen already and more to fall. and then we go to the rain concerns for today. there will be an additional two to three inches in pennsylvania, western new york, into portions of ohio, as well. but also in new england, we'll see rain and the risk of thunderstorms today. an isolated tornado risk that we have here. land falling tropical system, it's common to see tornadoes. this particular system sandy doesn't have that high of a risk of tornados compared to most, but the risk is still there, isolated but it's there. and this is the area we're watching including vermont, new hampshire, main,s massachusetts. also connecticut and rhode island, not out of the woods yet

here. so still concerns today. when it comes to today's threat for winds, we have high wind warnings that go through this morning or through lunchtime fending on the local areas. eastern pennsylvania, also here through central and south jersey into delaware and parts of maryland, as well. along the lake shore, winds have been very gusty. waves up, take. we'll easily see waves up over 20 feet.ooake. we'll easily see waves up over 20 feet.ke. we'll easily see waves up over 20 feet.e. we'll easily see waves up over 20 feet.. we'll easily see waves up over 20 feet. that will cause another set of issues. flooding and roadways being impact the including i-90 in ohio, there's been some stretches that have been closed for a times because of water overwashing. we have the high wind warnings all the way down the appalachians. gusty winds causing more power outages. and i just saw the latest number now, we're up to 8.9 million customers without power. so a tremendous number of people. and we may be adding more as also winds continue to blow today. back to you. >> jen, thank you.

>> the numbers keep adding up with more and more people out of power. governor cuomo just tweeting that there are over 1.9 million people in new york who are without power this morning. long island alone has about 800,000 people that are without power. brian shactman spent the night there and he joins us with an update. write lights out across the entire island. p. >> yeah, pretty incredible. thank you very much. we're told it's over 900,000 customers on long island. came down 3,000 in the last hour. again it's customers and you have to multiply that for people affected because probably more than one person per household in a lot of these places. we wait for first light tos assess the damage. you obviously complaint get off or on to the islands right now.

we had a tremendous surge here. we did not get a lot of rain, but we had sustained winds for more than six hours in terms of overall damage beyond the dune fencing and all of that, there was a bar and grill that was completely destroyed. we're told the north shore on long island sound had much more damage. we're told that a friday amount of local roads are impassable, the best metaphor i heard is it's like a video game where you can crawl up on the side of the road and go over and under things. that's how difficult it is to get around. the other concern on long island for a lot of people is drinking water and whether they'll have enough fresh water to drink. there are warnings for people not to drink their water. and they obviously need it heed that if that is the case. i will tell you i was at hurricane isaac in new orleans. i never felt that peak wind like i did in new orleans. the difference here was that we had peak winds for several hours. so it will be interesting when

we get light to see exactly what happened because a lot of people haven't seen beyond their window to 24 hours. >> are there people out on the streets or for the most part people are staying in their homes? >> no, people have heeded that. a lot of people did not leave when they were told. we didn't have imagine todayer to evacuations here, but a lot of people stayed the 22,000 in east hampton. but you do not see a lot of people out. we saw four or five people early in the day come here to take pictures and look. they didn't venture to the beach. but generally speaking, we have not seen a soul. >> brian, we'll check back in with you. it is approaching first light. thank you very much. >> did you feel like leaving your house this morning? >> no. but the situation is rough out there, but trees down all over the place. >> i could barely get out of the driveway. and then drive one way, turned around, had to go the other way. >> it was a blaze to get here. >> in my unsettled sleep with

the winds howling and everything, i was worried if you drive over a hot power line -- >> you're ook. you have rubber tires. just don't get out and put your foot on the ground. >> we thought it was lightning all around. >> the blue lightning that comes from the transformers. >> transformers exploding. the nation's major airlines meanwhile thousands of travelers have to wait out the storm. and phil, atlanta was a really good place to be the last couple of days. and you'll join us now with the latest on the travel conditions. you're working, but atlanta was a good place to watch this from. >> but he was trying to get out of atlanta. >> it's been interesting. yesterday at the delta operations center and now today here at the atlanta airport, i see eight of the flights to the new york area canceled so far. here's what the situation is in terms of flights in to the new

york and philadelphia region. and what we're looking at right now. when will we see the resumption of flights, a lot of that has to do on whether or not the crews get out. physical damage assessments at the three new york area airports as well as philadelphia. limited schedules today expected to d.c. and boston, primarily because the winds have closed down. there is not the huge damage fear there that there is in the new york area. and full service into the new york airports at least a day away. might see limited service late tonight, but that depends on what they see. and also can they get people out to the airports to work. the airlines have parked planes around the world. all together, cancellations totaling almost 14,000 and we're expecting that numb to go even higher today as there will be still some extra cancellations coming today. internationally, when you go overs overseas, the flights are not coming in to new york. jfk not likely to get anyplace until later tonight and airlines expect rebookings both

international and domestic, they'll go through the end of the week. so it will take time to figure out exactly when they request get the flights going back into the new york airports and a big factor is can you get people to work in the airports. the tsa, air traffic controllers, people who work for the airlines. because if there is no subway service, you have a real issue in terms of how can you get people to work. so those are the factors that will be front and center when people are looking at what we can do to get people back to those airports. >> if the subway is not up and running, you can't get the people out. and we've been reading stories with how this is the worst damage in the 108 years subway system has existed. there were seven subway tunnels that flooded, metro north lost power. and they haven't been able to inspect everything yet. >> worth noting on twitter last

night, mta said we haven't been able to assess the damage yet, so we don't know. but you have to imagine that it will be a couple days and what that means for the rest of travel and work across the board -- >> phil, you were supposed to be on your way to michigan, wer you? >> right. well, today is big earnings day in detroit. you have ford reporting today. you have general motors reporting later. tomorrow you've got ford numbers coming out within the next half hour. we'll have those for you guys. just going to have them from here in atlanta. >> explains a little bit about even areas of the country that weren't as affected by this. this is going to have ripple effects throughout the country. so very difficult situation for a lot of people and don't expect to travel anytime soon. phil, thank you. and we'll check back in with you in about half an hour. >> comments or questions, squawk@cnbc.com. we'll have much more on the storm's after math and the impact on the insurance industry when we return. plus dennis gartman will talk about the energy trade.

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welcome back. we've been watching the storm. you know it's having a major impact on all sorts of levels. also affect the markets. nyse and nasdaq closed today. putting will be trading until 9:15 a.m. right how you can see the dow futures down by about five points. and the s&p futures are down marginally as are the nasdaq

futures. this is in light trading. we are told that there's not a lot of trading taking place, but those who want to are able to until 9:15 this morning. in europe, we have seen modest declines, or they've turned around. cac up by 9, dax up by almost 1%. gain of 68. overnight in asia, you always saw some green arrows. shafr shanghai composite. hang seng and nikkei closed lower. but again modest changes. not any major moves around. oil prices had been indicated higher the last time we checked. you can see they're up by about 36 cents to 8590. heating oil is down fractionally and gasoline has gone up. that will be the big question, what people are paying at the pump. some of the refineries are shut down in this area. take a look at the dollar and you'll see that the dollar is down across the word.

euro at 1 .2952. gold prices at this point at least are up would i about $5.60. $1714.30 an ounce. >> you figure a lot of our faithful viewers are unable to watch. >> at this point, the numbers without power over 8 million people. close to 2 million people just in new york alone. >> we have the south, the west coast. >> that was one of famous of our colleagues years ago, during katrina, we were talking about how many poles had been town and she looked in to the camera and said just know it stay calm, help is on the way. and we all said no one can hear you. they don't have power. it was a very heartfelt sincere help is on the way, but the people that needed it were not

in front of the tv set at the time. >> you send out a reminder e-mail is down. >> and then by the time it's back up -- >> isn't it crazy that e-mail is work something. >> you're right, verizon was working. >> coming up, we'll talk to governor markell to check out the damage in delaware. well find out how his state made it through the night. up. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.

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it's almost 9 million residents are without power along the east coast. joining us to talk about the storm's impact on the state of delaware, governor jack markell. thank you for joining us again today. >> sure. >> it was as bad, it was probably even worse i guess than we thought as far as how much have you been able to look at so far? it was dark when i came in but i was shocked how many trees were down. >> well we've got high i would crews, emergency officials, state troopers, local folks out looking, a significant storm, a lot of flooding, 40,000 plus

people without power but when we look around we think we may have escaped the worst of the storm. we look at the loss of life in some other states and our heart certainly goes out to them and people in delaware who have suffered. we think we may have escaped the worst of it. winds were not quite as high as we expected them to be. >> the surge was unbelievable in the coastal areas but as a rain event a lot of that was west of the coast, at least where i was we didn't get the rain we got with irene, not even close. >> right, we were most concerned about the flooding because of the tidal action. right there, yeah, the surge, we have wonderful beaches and between dewey beach and bethany beach we had to close route 1. there are a lot of others we had to close throughout the state. the bay communities were hit hard but we've got people out looking right now. we think we escaped the worst of it. >> and total cost for delaware,

any idea yet in. >> we don't know. we have people as we say looking right now, i think it will take us a little while to figure that out. certainly concerned about the 44,000 families without power but we're obviously looking forward to utility crews getting out there as soon as, once conditions permit them to be out there. they can't be in harm's way if the winds are too high. >> for your state was this not as significant or not as negative of an outcome as irene, governor? >> well, i mean i'd put it this way we have a lot of flooding and we do have 40,000 plus people without power. that's a lot. i don't remember the figures with irene. i'd say this is more than irene but perhaps not as bad as we had feared. all the countings not done yet, but hopefully we've escaped the worst of it. >> the state offices were closed yesterday, they're closed again

today. governor, you expect they'll be able to open and get back to business as normal tomorrow? >> i would hope so. we're going to announce at 8:30 what we're doing with driving restrictions and the like and if we're in a position to release some of the driving restrictions then i would hope certainly people could be back, the state employees could be back tomorrow. we'll have more to announce about that later today. >> when we spoke with you yesterday the president had not yet declared a state of emergency in delaware. i believe that has changed since then in. >> he did, fema and the white house have been terrific to work with, very grateful to them. you know the way it works is they embed themselves, we have fema people at our emergency management agency to make it as seamless as possible, they've done a great job as have the incredible hundreds and thousands of people within delaware, the emergency response community, everybody from the national guard to the red cross volunteers to local law enforcement, state police, department of transportation, natural resources, all of those

people have done a great job. >> what does a governor do? were you up all night? >> i was not up all night. i was out all day yesterday up very late the night before, and you know, basically last night on the phone a lot with -- >> at the mansion? >> actually at my house. >> did you lose power? >> we did have power. i was surprised we had power. >> you did have power. >> we did have power, but 40,000 plus people still without power so that's a lot in a state of our size. our population is 900,000 people. >> exactly. all right, governor, we appreciate it. thanks for your time this morning and good luck. >> thanks a lot. >> you're right, anything to be cleaned up, i never thought we'd clean up from the snowstorm last year so as long as you're there to clean it up you're ahead of the game. coming up, one report that didn't get swept away by sandy,

we've got it this morning, ford motor their quarterly results they'll be released around 7:00 a.m. eastern time. check out this shot, the toppled crane dangling over 57th street, that's 90 stories up in the air, we'll have a live report come up in the next half hour. "squawk's" coming back right after this. if we want to improve our schools... ... what should we invest in? maybe new buildings? what about updated equipment?

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wreaking havoc across america's financial center. we are tracking sandy's path and adding up the costs, plus an update on what's next for the markets. assessing the damage, real estate mogul donald trump's here on what the storm's done to his

properties. it's an earnings alert. ford gets set to report, get the numbers and instant analysis only here. the second hour of "squawk box" starts right now. >> welcome back to "squawk box" on cnbc. we are covering hurricane sandy and its effect on the financial markets this morning. let's get you up to speed on the markets and the storm. stock index futures are trading this morning. regular stock trading will be closed for a second day today. the new york stock exchange says it's going to be running an electronic test of its platform on the chance it can't reopen the trading floor tomorrow so trading would still be taking place electronically. president obama declaring the state of new york a disaster area because of sandy's impact, makes the state eligible for extra financial aid. it's closed most new york city

tunnels and bridges as well and the mass transit biggest destruction in the 108 years the subway system has been around. will the labor department release the october jobs report scheduled friday morning? at this point the labor market it says it will make every effort to do so. as we continue to see the effects of the storm there is a chance the report could be delayed. the futures have been trading and will continue trading until 9:15. the dow futures down barely by 5 points, nasdaq off by 10.5 points, the s&p up by less than one point. super storm sandy slamming the new jersey coastline hurling record breaking waves and leaving a path of destruction in its wake. the weather channel's jen carfagno joins us with the latest. >> joe, good morning, record breaking waves, record breaking surge, now seeing record

breaking river levels. the delaware river set a new record. let me show you where we are with sandy and what else we're expecting out of it. we have a lot going on today. latest stats, pressure at 960, the winds at 65 and moving west-northwest at 15 miles per hour. it's still huge. you measure the cloud shield from one end to another and we're still talking over 1,000 miles worth of sandy out here when it comes to impacts today. let's show you what's going on right now. we have a lot of rain here across the east and the rain is starting to pick up a little bit across portions of northern virginia around the d.c. metro area. the snowfall has become quite significant and snowfall rates on the order of one to two inches per hour even in ohio, this is not just elevations we're talking about there and that's impact for the morning ride as well. we want to zoom into pennsylvania and maryland and take a look at some of these pinks and whites coming up on our radar there are snow reports on the radar here so we are concerned about the cooler air filtering in and the impact that

will have with the rain versus the snow. temperatures and the cooler air behind it, it's going to be a big deal for a lot of folks without power because it is going to be chilly for the next couple of nights and mornings and days. some of the wind gusts we've seen, 68 miles per hour in philadelphia, 64 in atlantic city, 90 miles per hour wind gusts in islip. still high wind warnings today continuing through early morning eastern p.a., in new jersey, and down into delaware and maryland. these wind advisories go through later on today. cleveland has been one of the worst spots i've seen, they gusted to 52 miles per hour and the waves are up. joe, back over to you. >> jen, thank you. and new york city of course is the financial capital of the world and it's grinding to a halt with the rails, the subways, the tunnels, the roads being flooded from three sides and bertha coombs is outside the new york stock exchange with the latest. good morning again, bertha. >> reporter: good morning, joe. yeah the new york stock exchange definitely not flooded.

they look like they're going to start removing some of these sandbags to try to get in there and assess what's going on. the problem is so much of lower manhattan was a record storm surge of nearly 14 feet and in one area lower manhattan that sent out a substation which caused a cascade of power outage, more than a quarter of a million customers are out in lower manhattan from 39th street south, and as you mentioned basically all of the infrastructure for travel is either under water, the major highways, fdr and the west side highway suffered major flooding, some of the tunnels have suffered flooding, as has transportation, but it's not just in manhattan, but in the surrounding areas as well, over in hoboken on the other side of the river of new jersey major flooding as well. even if they do open tomorrow, it will be physically very difficult for people in the area to try to get in here to work. in long island, the major

suburb, 80% of the power is out there. so it's going to be very difficult for folks who are trying to come in, folks who did stay in hotels in the city i can tell you in lower manhattan, we didn't have power, we didn't have running water so it's a very tenuous situation. we'll get an update from the city at 9:00 a.m. eastern. back to you, joe. >> bertha, thank you. and ford earnings just hitting the wires, cnbc's phil lebeau is in atlanta with the numbers. phil, i'll send it back to you. >> andrew these are better than expected numbers for the third quarter from ford, coming in with an earnings of 40 cents per share, that's ten cents better than the street was expecting, the street was expecting 30 cents last week, ford said they expected to beat that. 40 cents per share, 2.2 billion pre-tax. couple numbers, revenue 30.2 billion dollars a hair under what the street was expecting at $30.9 billion. the strength for ford and why they finished better than expected north america.

you look at north america $2.3 billion is what ford earned in north america in the third quarter, profit margin highest of any quarter in the company's history in north america, 12% overall profit margin at 6.3%. coming up on "power lunch" we'll talk with cfo bob shanks about the impact this storm has had on the dealerships and the auto industry in the new york area. >> they beat in the earnings by ten cents, higher than expected, the revenue light. is it all about the profit margins in north america, that's where they made up that ground? >> north america is what really drove it, becky, and they had a strong finish to the quarter. i asked what are you seeing with the strength in north america? $300 million more in volume, $400 million more in terms of pricing and cost contributions including $400 million from hedging, last year they had a

loss with hedging, this year because of hedging and commodities they had a gain of $400 million. that's where the strength is in the quarter in north america. >> what did they say about europe? >> the only positive note from europe is that they saw a very, very slight increase in terms of pricing, so they're actually starting to hold the line a little bit there but overall the story remains the same in europe. they're going to be expecting losses this year at least of $1.5 billion. remember they talked about that last week when they had the restructuring announcement from europe and i think that's a situation that's going to take a couple years to turn around. the only bit of bright news they saw a little bit of improvement in terms of pricing there. >> phil, thank you very much. we will be watching later today. >> you bet. up next we'll talk more about sandy and the aftereffects. there is a crane still dangling high above man hat on it. we'll get an update from robert frank after this. calculating the destruction from hurricane sandy, we'll speak to an insurance analyst what she's expecting after the

fallout from all of this. stock trading will be closed today, both the nasdaq and the nyse will remain closed. they plan to reopen tomorrow although there is a backup plan to try to get things running on the electronic platform for nyse, the arca platform. bond trading is also closed today. the s&p case-shiller numbers will be released, the index home prices for august is coming later this morning. the labor department says it is planning on releasing the october jobs report on time on friday. we'll continue to see what happens. this special coverage of hurricane sandy and your money continues after a quick break. americans are always ready to work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times.

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welcome back to "squawk box." the futures are trading up to 9:15 a.m., dow marginal, nasdaq down slightly, s&p up slightly. oil at this hour refineries along the northeast just beginning to assess the damage. we have wti crew that 8609 and brent at 110.03. hurricane sandy collapsed a crane working on what is slated to be manhattan's tallest condo

skyscrap skyscraper. robert frank is there, the images have been terrifying. >> i'm on 57th and eighth avenue. the area has been spared the electrical downs and flooding you can see over my right shoulder one of the most terrifying impacts of the storm, the seven-story piece of the crane is dangling like a giant knife. officials were hoping it would not drop last night in the wind. it hasn't. here's what we know so far at about 2:45 p.m. yesterday when the storm was starting that boom of that crane was blown over the cab and to the side of the building. it's hanging by some cables and metal, the only thing keeping that in place. the mayor evacuated this entire area including hotels, the entire four or five-block area was evacuated so people wouldn't

get hurt. crews tried to secure it or figure out some temporary fix, obviously conditions were not very helpful for them to secure that, so there it still stands. this building before this incident was one of the most high profile controversial buildings in new york. it is as you mentioned the tallest residential tower in new york, also i've been covering it one of the richest several billionaires purchased penthouse units for more than $90 million. now the contractor on this project who is also responsible for the crane they've also been in the headlines, the company paid millions of dollars as part of an overbilling scandal earlier last year so even before this, a lot of questions about building the contractor and now even more questions whether they took enough measures before the storm to tie that crane down. back to you, andrew. >> robert, before you go, what kind of conversation is going on about how ultimately they can take that thing down? we were talking just on the set, even if you have spider-man go up there it would be hard --

>> superman? you want to get superman going, okay. >> reporter: even under good conditions, it takes at least two days to take a crane apart, so with conditions the way they are and the fact that's broken it's going to be days and days before they can secure it and start to dismantle it. >> that means 57th there is going to be shut for at least a couple of days. >> absolutely. >> thank you, robert. appreciate that. stay safe out there as well. what are you hearing in. >> apparently superman lives in metropolis but like he couldn't fly. >> how about batman? >> gotham. >> that's closer. >> but spider-man, i don't think he, seriously, how do you go up, are there men that have to climb up? >> yes. >> that -- and then try? >> there were men going up there yesterday. >> who does things -- is it probably too heavy for a helicopter. >> yeah, you can't do that. >> in this weather you can't do that. >> how do you --

>> very brave people go up. >> i guess you secure it and then you would get, pull it over to the side or something? or latch it to the side? >> i'm making assumptions. we have no idea. >> that is very -- >> 90 stores up. >> thank goodness it didn't fall yesterday. hopefully they'll get it secured now that the winds have died down. let's talk about the insurance angle, gloria vogel, senior vice president at drexel hamilton. thank you for joining us. >> good morning, thanks for having me. >> gloria, i've seen numbers from $10 billion to $20 billion to $100 billion. let's start there. >> okay, well one of the risk modeling companies, equicat said they were expecting economic losses of $10 billion to $20 billion within short losses half of that, $5 billion to $10 billion. >> what is your expectation in

terms of those insurance companies? we were talking this morning, we were watching swiss reef for example, prices going to go up, prices going to go down? i doubt they're going to go down but the impact on the insurance industry? >> what usually happens is the stocks fell off in advance of the storm and once the storm hits and people can assess what the damage is, the stocks go up afterwards and the reason is that that's all the more reason to raise premium rates. >> gloria, when you come up with some sort of damage assessment numbers, i realize it's awfully early but what sort of things do you look at to try to get a determination for that? >> well, one of the main factors is wind damage, and actually this was the category 1 storm, so that wasn't the big problem here. the big problem with sandy was flooding, and flood is usually covered under the national flood program, not by the private insurers. >> so that's why you're only expecting about half of these

losses would be insured losses, that's a number lower than would you normally see in other storms? >> yes. you know, most of these losses were, as i said, floods. you had the surge come in over the wall and that's when most of the damage was, and i should point out that in new york city a lot of the damage actually came to, you know, public facilities, the subways, the transportation system has been pretty much knocked out for a couple of days here now. >> the national flood system, how does that work? i realize people pay in, if you're in a low-lying area you're required to carry that flood insurance. if it's responsible for a huge amount of the losses what impact would that have to that program? >> that's a government-run program so obviously they're going to try to better assess what kind of pricing they charge for the flood coverage. >> but you would expect that

flood insurance pricing just from the government program itself would go up as a result of this, too? >> usually when you have losses what follows are price increases afterwards but yes, i would certainly expect you might see some changes there as well. the assessment of this storm, as bad as it seems the european reinsurance companies were trading up today. >> we saw that earlier. which companies have the most exposure here? >> there are several that have exposure in the northeast. allstate, travelers, chubs, aig, hartford, any number of those would have exposure to the northeast. >> what were the other? >> allstate, travelers, chubs, aig, hartford. >> gloria, we have to run, quick question and i know two years does not make a trend, given we

have two storms in way we haven't had in many years does that change how insurance is going to be marketed for example up here? >> i don't think it's going to change how it will be marked. i think demand will pick up. there's nothing like seeing your neighbor's house float away or burn down or have some problems for to you want to go out and buy more coverage in the future, so i think you'll see increased demand. i think pricing will get an extra little boost. i don't know if it's enough to make this a hard market but rates have been moving up because of the losses from last year, but also because of very low investment yield. >> gloria vogel, thank you for joining us this morning. appreciate your perspective. >> thank you. i think we have a shot of seaside heights, where if you remember yesterday, there was a, i guess kind of a little, there was a haunted house, number one, that's no longer there, and there was also a log flume and the entire top of the log flume

is gone. >> incredibly high seas. >> you can see the bottom. i guess we showed a shot of it yesterday, if you don't remember, but if you didn't remember seeing it yesterday it was a haunted house and top of the log flume and the haunted house is completely gone and just that's what's remaining of the log flume. coming up, donald trump on how his properties have weathered super storm sandy, and then check out the superpeen markets european markets down fractionally. bob... oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race.

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we're back on this tuesday morning. one for the record books and we're just getting a feel for the true damage throughout the northeast. kayla tausche joins us with an update. kayla? >> reporter: abdrew, here in new jersey we've been waiting to hear from governor chris matthews, he appeared on the "today" show and what he had to say about the effects. >> we have a battered, battered new jersey shore that i hope to tour a little bit later on today.

i think the losses are going to be almost incalculable. >> reporter: he also said that at this time, it's unclear whether he would need to cut his budget to meet any sort of requirements for funding this potential recovery that lie potentially in the days and months ahead. he said new jersey will get federal assistance, an hour after word from president obama parts of new jersey were declared, in addition to new york major disaster areas, including eight counties, including the one we're in, cape may county, as well as ocean county, which includes the likes of seaside heights and point pleasa pleasant, popular beach towns there, as well as atlantic county. going back to ocean county, "the star ledger" is reporting 20 fires overnight in homes flooded up to five or six feet of water, major rescue effort continues there. atlantic county, home to atlantic city, we've been talking about that all morning and all day yesterday sustaining

probably the worst damage of any of the cities along the jersey shore, definitely a dire situation here but now one that we know will get federal funding to help assist in this recovery. andrew, becky and joe, back to you guys. >> kay la we're watching the ses behind you very high. when it came to high tide before had all that area behind you been covered by the water? >> reporter: yes, it was, becky. i wouldn't say the waves were crashing over the dunes but definitely spilling into them and into the street. throughout the course of the night last night the street was flowing somewhat like a shallow river or stream. it was a lot of water flowing, and there's a lot of water that still remains in low lying areas. we spoke to the cape may mayor and said high tide not as bad as expected because of the actual time of landfall and the direction of the winds. winds actually pushing some of the water back out to sea instead of back on land so the high tide wasn't as dire as expected and this morning is

actually said to be not as bad as yesterday morning so the water is receding a bit. we're told water is receding a bit in atlantic city as well. good news but it appears the damage probably already done. >> kayla tausche, down in cape may, thank you very much. if you have comments or questions about anything you see here on "squawk" this morning, e-mail us at squawk@cnbc.com. up next donald trump will be join us. we'll get the chance to ask him about his properties and the damage they may have occurred. you are watching special coverage of hurricane hurricane sandy, "squawk box" is back after a short break. a tall ord. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people

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let's look at some of the non-storm headlines that have crossed the wire while we've been dealing with sandy, the biggest being a management shakeup at apple where software chief scott forestahl is

officially out. some say it was refusal to take responsibility for the much criticized apple mapping software. some compared him to steve jobs himself in terms of his sort of innovative ability to think through the problems and issues, but if he's leaving -- >> huge surprise and to get this news in the middle of the hark is another way about going it. jim cramer said there's so much negativity even if cook promoted these guys you'd probably see the stock trade down. >> apparently ives and forstall would not sit in the same meeting room together. >> that's an issue. >> according to a story i saw in the "new york times" this morning he had been asked to sign the original letter that tim cook signed apologizing to everybody over maps and he refused to sign it and said this was, i don't want to say a temp

nest a teapot but that was jamie dimon's issue but not worth apologizing for and now he doesn't have a job so he may wish he apologized. we'll get the latest reading on home prices with the ca case-shiller report out at 9:00 a.m. eastern. the house postponed the release of the consumer confidence report until thursday. ford released profits, ten cents above consensus. it reported record north american results with highest ever profits in that region. we continue our coverage of hurricane sandy, and its effects on the markets. the weather channel's jen carfagno joins with us the storm's latest track. jen? >> andrew, good morning. this is still causing a lot of widespread impacts, you measure it from cloud shield end to end.

about 1,000 miles of clouds out of sandy. the latest stats pressure at 960 and winds at 65 miles per hour. the key is that there are so many dimensions to it. there will be wide-reaching impacts. the snow is one angle that's ramping up, snow in ohio and not just elevations in west virginia and virginia down to north carolina, we're just talking the ohio valley getting snowfall and it will accumulate because of how heavily it's falling. we have rain starting to pick up, watching closely around d.c. and baltimore and i wonder if some of this is sleet miktsing in t mixing in. we take you out to columbus, snow falling, gusty winds, cleveland a spot that's all rain but cleveland a mess, winds in the last hour gusting over 50 miles an hour. impactful snow, the winds, the rain and the snow still going to be an issue. winds gusting 50 miles an hour and that could take down tree limbs and could take down trees

since the root systems have been weakened by the rain. another facet is the chilly air coming in, we've been talking about the millions of people without power. these are the temperatures they'll be dealing with today, we're looking at a high of only 40 in columbus, ohio, pittsburgh 47, roanoke where they've been gusting over 50, nearly 60 miles an hour all morning long, temperatures in the 40s. you factor in the wind you have a windchill, too, the chilly air will be in place across the mid-atlantic and northeast through the end of the week. lot going on between the cold air, the wind and the rain still today. >> and that was part of the whole dynamic i guess, all these different -- i don't understand it, the pressures, very low pressure, record low pressure, 900 something i saw. >> it was the storming merging, the hurricane plus the big old winter storm system. its it was a nor'easter. >> like they say a perfect storm but perfect the wrong word. jen, thank you. as we continue our coverage of hurricane sandy we're joined

by donald trump of the trump organization. i'm glad we can talk to you. you have a view of that crane and you are a builder and i'm not saying you're working your own crane but you certainly know how to build high-rises and you probably know a lot more about how this needs to be fixed than we do. >> well i know lots about cranes and lots about building and i am looking at that crane right now. i have a window that's just about even with that crane, literally looks and i was watching it yesterday and they didn't tie it down. that crane was not tied down and i was surprised because it was moving. they had what's called the hook, the hook with a heavy ball and that thing was blowing in the breeze like crazy and all of a sudden, and you heard these reports from people that also saw it but the boom was r shaking and then it blew over. i was looking at it like ten minutes before it blew over and i was really -- normally you drop the boom onto the concrete,

onto the building or close to the building but it was up at a high angle and didn't take very far to go. you understand that. it wasn't like dropped low where it couldn't have blown back. it was at a high angle. >> so they didn't secure it properly? >> no, the ball was not secured. the ball was hanging and blowing and i was very surprised to look at it, and then all of a sudden it blew over. so it's amazing that it didn't break, because all the weight is on the back. on a crane, it's called a swiss crane and on a crane like that all of the weight is on the back so the load balances out. now 100% is on the back. and it's amazing, frankly, that the cab didn't break off, that the whole centerpiece didn't break off, and you know it's a very precarious position right now and just tells you about new york construction guys. they have to get up there and take that down. they're called riggers and they will get it down. i don't know how they're going to get it down but they will get that thing down. see how high that boom is? i'm looking at it on your screen now.

but that boom was very, very almost straight up. so it didn't take that much wind to blow it back. >> the mayor said everything had been inspected it but other times the city might outsource the private firm but apparently before sandy they were all inspected. >> i think the crane's amazing that it stayed up, i think it's amazingly powerful strong that it stayed up. if you look at your picture before it starts going backward you look at how high that boom was, it was almost straight up in the air. it didn't take that much wind to blow it back, i was surprised and they didn't have the ball and hook, they didn't have it connected. that should have been connected to the building and then the boom wouldn't have been able to go back. so somebody made a big mistake. i don't know if it was inspection, because frankly, you can't inspect all of the things you have to expect in one or two hours but the guys on the job, somebody should have known that you can't have it sitting

straight up. it was so high up and i was surprised to see it, and very important, the ball was dangling in the air. it should have been down on the concrete attached. >> the other thing we've been watching atlantic city, some of the boardwalk apparently wiped out. this is a storm we've never seen in our time. >> i think atlantic city was hit hard. that's been hit harder than anyplace probably in the country. i hear the boardwalk is virtually wiped out, the very famous boardwalk and atlantic city was really hit hard. >> how have your properties held up? >> the properties in new york, you know, we lost no power in any buildings. i build them with generators, i build them with a lot of backup so all of the people that live in trump buildings are watching your show right now. lot of people won't be watching your show. i have so many friends they have no power whatsoever. i have people coming over to my building to use phones and they have no power whatsoever.

>> over 8 million people without power. >> yeah, they just don't have any power in the buildings. i've never seen anything like it, millions of people are without power, without any kind of power but my buildings all have power, and that's very important. >> we know the resiliency of new york and new yorkers i guess, don. eventually it all gets fixed, it all gets redone. >> when you think, i often talk about it, the world trade center, two 100-story buildings came pouring down and there was tremendous grief and problems, and yet everyone got to work and within six months, it was amazing when you see what happened. now that was 100 times what we're talking about right now. when you think of what happened then, and new yorkers are amazing, they're resilient. we have a great mayor, mike bloomberg is a great mayor and he's going to do a great job and we're lucky. >> at this point. go ahead. >> donald, we often talk to you about politics, and in some

cases i've been reading this morning people trying to politicize or raise issues about this particular storm and the aftermath. one of the questions that was raised was the future of fema and how it should be dealt with. romney had made some comments in some of the earlier debates about whether he would try to scale fema back. the president pushed back, there was an editorial in "the new york times" this morning. i wanted your thoughts. >> i think these problems are more of a local based thing. new york has some great people and great workers and great construction people and you look at the mta, what they're doing to clean up the subway. i mean it's amazing what's going on if you look at the subways, the tunnels are i hear loaded to the top with water and it's saltwater which is the worst kind of water. it corrodcorrodes everything.

the local people in these tragedy do a great job no matter where you're talking about in this country. >> how long does the $5 million offer? >> i have to extend it. everybody's talking about it. it's got unbelievable momentum. i was on "the david letterman show" the other night and it was amazing, like a tremendous ovation, but i think it's unfair to say i'll make it thursday at 12:00, i'm extending it thursday to 12:00, $5 million to the favorite charity for release of certain papers. he should do that. >> certain people are really upset, i won't mention any names, who are the people it upsets the most, i don't understand how they can get so irate about -- >> well it's amazing, and even david letterman, we were talking about he said where do you think he was born? i said well david, where do you think he was born? he said i don't know, probably born here.

i said probably. probably is the key. probably is no good. >> this is for college and stuff, right that, you're talking about? >> this is college records and passport records, very simple to get, you can have them within an hour, and he gets $5 million as an example favorite charity, could be wounded warriors, it could be the relatives of the people that were so horribly killed in benghazi, the relatives, it would be great, it could be for whatever the president wants $5 million and i even said i'd up it, which i would up it over $5 million, but so far, we haven't heard, and yet people try and defend him, how can you defend somebody for something like that? it's ridiculous. >> you wouldn't go to $50 million? would you go to $50 million? >> i would go much more than $5 million, if i thought it would work. you know, somebody on the internet said it doesn't matter what you offer, he'll never do it because his records are

incorrect. i don't want his records to be bad. i want them to be perfect. i want to pay the money and the records to be perfect, just so you understand because if they're not right, then we've had a sham as a president, and that would be a horrible thing for the country. >> donald, thank you. >> okay. thank you. when we come back, we are just under an hour away for the next high tide, 8:37 a.m. eastern time, that again will push water towards lower manhattan and towards the shore in new jersey. if you look at a split shot of the boardwalk and seaside heights, on the left is a shot that we took yesterday of the log flume, you can see it there. on the right you see the first signs of light today showing the upper portion is gone, the haunted house on the left is gone entirely. this is just some of the before and after shots that we will continue to see through the day. when we return the latest on hurricane sandy and what it means for your money. "squawk box" on cnbc is back in

just two minutes.

get an update on the situation in new york city, and

this is a first time we've spoke on it scott, isn't it? i wasn't worried about you, i knew you'd be okay but good to see you, scott cohn joining us with the latest. >> reporter: yes, it was touch and go there for a little while, joe. 12 hours ago from this location, battery park in manhattan, we were, i'm not xnlg raexaggerati running for our lives from the storm surge. if the top steps it would be nine feet. it got to around 13 feet and the water came up very, very fast and when the storm surge came up that meant the flooding would begin, subways flooded, there's a lot of other underground flooding, the brooklyn battery tunnel not far from here was end to end with water. as the city tries to battle back now, that's what they'll be dealing with getting the water out of here, the tide has gone down, another high tide a little

over an hour from now not as harrowing as yesterday. look at some of the images from last night, national guard troops going down broadway, trying to get underground fires under control, get a lot of the flooding under control, and that massive explosion of a conedison substation on the lower east side of manhattan, even as they were shutting down power for everything basically south of the empire state building if you're not from new york city, that power is still out. seven subway tubes across the east river filled with water. the commuter rail lines to long island and westchester county are also out so as the city tries to get back, as they try to get the financial markets up and going again, the big issue continues to be getting people into the city, that's going to take a while. becky? >> scott, thank you very much. obviously sandy taking aim at critical east coast refineries. mary thompson is in baltimore

and has abupdate on closings and shutdowns. >> reporter: good morning, first an update on baltimore and maryland as well. you may have noticed some people watching our area yesterday we had to move our live shot because of flooding in the streets. you can see the waters of the chesapeake bay high here. here in baltimore there was some flooding, 300,000 people are without power and travel restrictions are in place until noon today. the good news the people in maryland feel they escaped the worst of the storm. the coast guard telling me there are six ports that are closed along the east coast including of course new york and new jersey and the port of baltimore which is about a mile east of where i stand right now. the refinery complex no change from yesterday, two refineries on the east coast completely shut down, the phillips 66 in lyndind linden and port reading operated by hess. three others are running at reduced rates. the other piece of the puzzle is the pipeline operators.

7:00 last night colonial pipeline shut the main line going up to new jersey. the reason being some of the customers, mostly terminals could no longer accept fuel. the good news is they didn't lose any power so if they have to restart the pipeline to send fuel up there they should be able to do so. any changes to that, we'll have updates later in the day. guys back to you. >> mary thank you very much. let's check in with dennis gartman of "the gartman letter." dennis, did you hear what mary talked about, the refineries shut in. what is this going to mean for oil, gas, heating oil? >> i did hear what mary had to say and quite honestly i'm surprised how little has been shuddered in. if you asked me on sunday, i thought we'd have all the pipelines closed down and most of the refineries closed completely. the fact that only two have been shuddered in completely and three still running at reduced rates, we've come away from this much better than i would have

thought. originally you had the products both distillates and rebop gas strong against crude oil because of the probabilities we would ant' be using that much crude. by the weekend it appears we'll be back to full bore and have the refineries up and running much faster than anybody had thought. >> we also know, dennis, this morning, we will not see stock trading, won't see bond trading. that is expected to reopen tomorrow. what does it mean from a trader's perspective? >> we're all going to be bored. i'm surprised we're not trading the bond market. it's a good thing we closed the futures because we might have a circumstance with a flash crash but i'm somewhat surprised we're not trading bonds later today. we'll be up and running. they take time. everybody should just be patient. we'll be back tomorrow, everybody can -- all the addicts can have their positions back on, all the positions can be squared up before the end of the

month. that's probably the biggest thing, beck, just to get the markets open so for month-end and some instances fiscal year end circumstances you can get these things cleared up but we'll be back in full bore tomorrow and all the addicts can be back trading up a storm again. >> dennis the futures are open this morning until 9:15, the latest trade, it's been light volume. >> yes. >> that's okay, we're a little surprised to see futures trading this morning but i guess it's okay at this point. >> you have the stock index and energy trading. the grains are not a problem at all. it will be good to get the cash markets open tomorrow. >> dennis we've talked about the importance of the end of the month tomorrow. i'm not arguing this is going to happen or speculating this is going to happen but if for some reason they weren't able to open tomorrow, what would be the impact? >> that would be difficult. that really would be difficult, hedge funds have mark-to-market by the month end. i've got a fund in canada that i have to make position changes at

the month end, margin calls sometimes are delayed until month end. there's a lot of circumstances that prevail. they have to get certainly all the futures markets open and functioning. they're going to have to get the new york stock exchange up and running if only on arca. i'm not too concerned about it, it will get done. >> the aftereffects people trying to figure out what happened, $10 billion to $20 billion are the estimates. what does that mean over the long haul? there will be some rebuilding that needs to be done. >> you'll hear people say it's good for gdp. any time you destroy something that's not good for gdt. there will be reconstruction. the pictures from atlantic, what is it the gambling center. >> yes, atlantic city. >> watching those places having been literally destroyed they have to be rebuilt. i suspect that $20 billion to $30 billion is probably quite high. i've lived through enough in

virginia. we always hear the enormity of the building costs and it's usually half of what it's going to be. that's a good rule of thumb. i think we get way overblown on all these storms. they're usually much less damaging than the original estimates. >> dennis we hope that's the case. thank you for calling in. >> thank you, bye. the futures are trading relatively light volume to this point but the dow futures down by about 12 points, s&p futures marginally higher and the nasdaq futures down by about 10. you can see some shots of daylight showing some of the initial damage that's been done. now is the time when people will start assessing the damage but we're not even through everything at this point. you can see those seas are still very high at seaside heights. you have high tide coming in just about 40 minutes. "squawk" will be right back. you are watching special coverage of hurricane sandy, what you need to know about the storm and your money.

"squawk box" is back after a short break.

we'll be back in a second, we're going to cover hopefully the cost of sandy, get some estimates of the damage and cleanup, some estimates go as high as $100 billion. >> i don't understand how you

come up with -- >> andrew was $40 billion in today's dollars. that was, remember in miami? we are going to talk though about the economic impact of the storm. the stock market is closed but futures are trading and cnbc is open for business. keep it locked here all day for the latest on the impact of sandy on the financial markets. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused.

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we'll tell you what to expect when the exchange is open. cnbc reports live along the east coast. the third hour of "squawk box" starts right now.

it's like flickering, you don't want to go over it. >> are you driving over a lot of it? >> we turned around and we were going one way and back down, on another way but they're everywhere. >> how many tunnels in this area. >> bridge and tunnels, the lincoln tunnel is the only way

to get in and out of the city. >> in and out of the city. >> let's get you up to speed on what you need to know about the markets and the storm. we have the stock index futures trading this morning. regular stock trading will be closed for a second day today. this is only the second time since 1888 that the new york stock ex-s change has been closed for two days in a row because of a weather. the exchange will be ready to open tomorrow even if it physically can't open trading, and that test will be taking between 9:30 and noon east coast time. president obama declaring the states of new york and new jersey disaster areas, making the states eligible for extra federal aid and the storm closed most of the new york city bridges and tunnels as well as the mass transit system. it is the worst disaster in the 108 years of the subway system in new york city, took on a lot of flooding yesterday. one big question remains the labor department, is it going to be releasing the october jobs

report as scheduled on friday morning? the department of labor is still saying that it will be releasing that jobs report on friday. let's take a look at the futures that are trading but apparently the nasdaq futures are down by about 10 points. overseas in asia it was mixed message here today, you can see the shanghai was up just barely, korea kospi was higher. the nikkei down and hang seng was lower in hong kong. in europe this morning we're watching some green arrows. you can see in germany the dax is up by 0.9%. the ftse up by 0.8% and in france up about 0.25%. ford coming out with earnings of 40 cents a share, ten cents better than the street was expecting. revenue came in just below

expectations, but as phil lebeau told us at that point it was very strong numbers that came in, in north america and the highest profit margins they've ever seen in north america that helped things out, i believe the profit margin was 12%. let's get down to new york city get an update from scott cohn who joins us, where are you there, exactly, scott, right now? >> reporter: we're right at the battery, andrew, where we were last night, and i can tell you the sun is actually peeking out. that's a welcome sign, but hurricane sandy or whatever it is now, sandy, is not over with yet. stiff wind blowing out of the east that continues to push water in, and this is the problem. this is why the bridges and the tunnels are still closed, subways are still closed, because you still have water. we've got another high tide coming here at the battery about an hour from now and already as you can see the water is lapping up around me. it was considerably, if i was

standing here about 12 hours ago the water would have been well over my head, and it came up very, very fast, and the flooding began. the most of theborough of manhatt manhattan, this island is very much an island with the bridges and tunnels mostly cut off and also no power below 36th street or roughly where the empire state building is, if you're not from around here. that's a huge chunk of real estate, and very important in terms of getting this area up and running again. we showed you last night, though, that the new york stock exchange remained high and dry through all of this, despite some reports to the contrary. there was a fair amount of flooding around the exchange within a couple blocks of it, but the exchange itself not only stayed dry, but the power stayed on through emergency generators power but that's not so much the issue. the issue is connectivity to

everyplace else and all of the other firms that are in evacuation zones that still are subject to coastal flooding this morning, and that's why it's become such an issue. it's interesting when you think about it, about 48 hours ago the thinking was that we'd be able to do without all of this. you have to get people where they need to go, and you just couldn't do that, and as of this morning, you still can't really do that yet. guys? >> i got a selfish question for you. do you have any update or sense for later today when bridges like the george washington bridge and tunnels like the holland tunnel might be open? can you speculate where that might be? >> i can't really speculate on the tunnels because that's a flooding situation. the bridges for the most part have closed down because of winds and the winds are settling down somewhat, so i would think and this is totally my speculation but i think they'd

be able to open those up sooner rather than later. water end to end, presumably they've gotten a lot of the water out but now they have to check for damage and everything else, so presumably there will be ways to get back in and out of the, manhattan at some point today, but it's going to be a slow go. >> you know, scott, we see some of the waves coming up over behind you kind of washing up on you. is the water going to come higher? >> reporter: it's probably going to come higher and here at the battery, becky, the high tide is forecast for 9:06 this morning, so it's a little bit -- >> about an hour. >> reporter: a little bit further away, but the fact that it's lapping up over onto the's

ple nad as esplanade, it was like this 9:00 yesterday morning, it wasn't storm tide or surge, the fact it's come up this far it will come up more in the next hour but the hope is that it will come down quickly and we won't have the same kinds of disastrously high tides that we've seen. at this point yesterday we were dealing with water all around us. >> you were standing with those -- >> reporter: as the storm surge was coming in we were high tailing it out of here fast. it came in faster than we expected and more importantly we knew it would come in fast but it came in higher than the forecast. it was a record more than a 13-foot storm surge for here in the battery. >> scott cohn, thank you for

that update. again, stay safe but it does appear that things are calming down there. let's get an update from the weather channel on the path of the storm and where it goes next, maria larosa joins with us more. >> good morning, guys. few technicalities here. sandy no longer tropical so we're calling it a super storm sandy and national hurricane center no longer issuing any advisories. 65-mile-per-hour storm right now, still extremely low pressure, 960 millibars, set a record low pressure when it came ashore in atlantic city. still sandy is huge, impacting new york city still and all these people and businesses from western pennsylvania into the ohio valley. look at how much snow is now on the western side, so that is a real problem because we also have winds. still in new england, we have a storm threat today so from anywhere from maine down into connecticut, we are looking at the strong wind gusts but because now we have these

discrete storms now, aside from that big tropical moisture coming in, you now have the chance to get a little bit of sunshine, some instability, that's why we could see a few thunderstorms and maybe some rotation, including tornadoes. on the heavy snow side, travel here is screeching to a halt. eight inches in beckley, elkins, 14 inches and 18 inches of snowfall the high point in davis. still a lot of wind to be had with this storm as well. we have speed restrictions, places like philadelphia, all the bridges are open but not to motorcyclists and trucks so again businesses trying to get back up and going, it's going to have a hard time there. these are the high wind warning including philadelphia, atlantic city but also along the great lakes, easily seeing gusts today

perhaps higher than places that saw sandy's fury yesterday. cleveland could see gusts to 60, 70 miles per hour today with sustained winds 20 to 0 miles per hour and again you have in the appalachians the high wind warnings where on top of that you're seeing the snowfall so still sandy quite a mess here. as far as the rain threat goes it's still there. we've seen as much as a foot of rainfall in some parts of the delmarva but the additional rainfall as we get in through central and western pennsylvania, two to three inches. could see less than an inch in the new york city area so that's going to add fuel to the fire here unfortunately, and then you get into northern new england with some of the showers and thunderstorms easily could pick up locally five inches or more. guys this is still a huge storm system with wide ranging impacts for a lot of folks for the next few days. >> yes, maria, thank you. we're talking about downed power lines, i don't know if you know anything about that, but i have some details here. >> you do? >> number one, downed power lines, never assume that there's

not -- >> power going through them. >> they could be reenergized, go off, come back on. anything around them, fence, water, metal buildings, fences, poles, mailboxes, standing water, even things you don't think of as conducting, a tree or branches could still be. so stay away from them. >> and not driving over them. >> that is a different situation not because of the rubber in the tires but because of the farraday cage, the ion skin in the car. that's why if you're in a car in a lightning storm and it's a safe place to be. this says if you drive over it, your car could become energized where you don't want to touch it, you roll the window down and dial 911 or yell or help. in general stay away from the power lines, okay? >> good advice. >> yeah. coming up more on the damage

from super storm sandy. i like saying farraday cage. i know i've heard of the farraday guy but electrical engineers -- you're looking at battery park in new york, where we were just talking to scott. high tide is less than a half hour away. i believe 8:37. >> 8:37 in some areas, that may be down on the jersey shore. scott said 9:07. about 50 minutes away for battery park. also an update on the markets, we'll talk about the decision to close the exchanges and the plans for reopening them with bob pisani, who is out here again today. [ male announcer ] tradins like a high-speed train. and you don't want to miss it with thinkorswim by td ameritrade. you get knock-your-socks-off tools, simple one-click orders, real-time paper trading to hone your skills, plus anytime you need it support. ♪ stocks, options, futures, and forex.

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. welcome back to the program. stock and bond is closed today. last time they closed because of weather was in 1985 because of hurricane dploria. bob pisani is at our desk with more on what all this means. >> it's going to be a big day tomorrow. everybody wants to open, everybody, because it's the end of the month so there's a whole

series of meetings going on at nyse and nasdaq, a lot of testing this morning. there's a whole emergency response team, they're meeting with this morning, in charge of logistics, checking building security, what's going on around them, coordinating with police and fire. let me give you a checklist of what the nyse is going through today and this morning. put up that checklist here. number one they'll be trying to confirm and making sure the backup generators are functioning. they function terrificcally throughout the night. great shots of the front of the nyse and the red, white and blue in front of the columns. they'll confirm that and make sure everything is working. they'll decide if people will be able to get in. they've got the list of people. remember the goal here is to open with a skeletal crew at the new york stock exchange. they only needed 200 people. they have the list, they'll confirm people still need to get in. they'll make sure the bridges and tunnels are open but they do not need the subways open, just to get people down there and make sure they can do it safely and the roads are open.

they'll look whether there's damage to the telecom facilities in the immediate area and they're testing the backup problem. if they cannot open the new york stock exchange for itself, they will open with the arca electronic trading facility. for that they don't need a lot of people to be physically present because the computer people can jack into the system from a remote position. so the goal again, open tomorrow with that skeletal team on the floor. decision will not be made on exactly how they're going to open until later today, and it could be even early into the evening, a lot depended on things outside of their control like access to facilities around the immediate area. i talked to nasdaq as well, they are testing their facilities today as well, planning to open tomorrow. >> would you expect heavy volume tomorrow, lighter volume because people can't get into the city and get to their desks? >> i expect slightly heavier volume because it's the last trading day. normally people sort of trade in and around their positions, some people have to report at the end

of the month, and basically have to report to their clients at the end of the month so i expect a little bit heavier volume. today if you watch the futures the last few days, volume has been light. the 9:15 session will be ending this morning. without the cash to play off of, you don't get a lot. >> we've been talking about how public transport, so it's in such a mess right now, how many people are actually going to make it to the new york stock exchange tomorrow. >> the bottom line is all they need is about 200 people and they've got the list. this is pretty well organized for the last few days of people who are coming in by car and that's what they're checking this morning to make sure everybody is there, everybody knows where they need to be and that's why getting those roads open is critical. >> one of the other questions, bob, we were talking about it yesterday is what about some of the trading floors for the banks, if they can or can't get people there. what do they need to have up and running? >> i think the idea is to have some kind of at least skeletal crew going here. the bottom line is, they want to open tomorrow, even if it's just

skeletal crew. even if it is abbreviated trading sessions. i've heard them say this could only be open for four hours, may not be. again they like to have a full day up but the idea is to get some trading in, even if it's a skeletal crew on all the trading desks. >> you have some roads opening up, governor christie is saying that the parkway is opening, he's still telling people they should not be on the roads unless they need to be, something like 200 other roads that are closed in new jersey but slowly you're seeing some things open up, the lincoln tunnel is open to get in and out of the city. >> i would anticipate most of the roads would probably be open by late tonight and certainly by early tomorrow morning. >> bob, thank you very much. as you mentioned, this is a decision that will be made later today, even into this evening and we know you'll be all over it. >> i'll be in touch with the nyse and nasdaq throughout the afternoon. we'll bring you the news as soon as it hits. >> when we return, what to expect when the markets open tomorrow assuming they open. barclays barry knapp joins us at 8:35 eastern time and the widespread power outages from

ralph larosa, president of pse&g. over 2 million customers in new jersey without power and we'll hear more from him. bob... oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign.

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geico, see how much you could save. let's get an update on the damage from the superstorm sandy. brian shactman joins us from montauk with more. >> reporter: it's a study of

contrasts on montauk. to my left it is gorgeous when the sun peeks through and to the shore there's a hen-foot drop to my left and there was no ten-foot drop yesterday and there's an incredible amount of beach damage. you can see the whole beachfront is destroyed. that was a bar and grill that has never seen damage like that. it is absolutely gone and you walk all the way up the shoreline and you see the same thing. they do think on the north shore, believe it or not, there's more damage because of the storm surge onisland sound. i talked to bill wilkinson the town supervisor, a retired disney executive who decided to run east hampton and he said the local fishermen told him they have never in their whole lives seen as much water come in as came in yesterday, so it's a big contrast. we have a beautiful ocean, a destroyed coastline on the south shore. on the north shore they're trying to assess the water

damage. the one road out of here did breach, i was told, and was in about three or four feet of water overnight. they got in the bulldozers, they block or rebuilt a dune and this has drained. there is a road to get out of here although they're telling people to stay put for another day. we have a crew to see other parts of the north shore, we'll try go live in our next report. right now it's about assessing the damage and here at the gurney's inn there's potentially millions of dollars worth of damage. >> brian shactman in montauk thank you for the update. coming up in the next half hour a market update from barclays barry knapp, the latest from the power outages from pse&g president ralph larosa and updates along the new york and new jersey coasts. at optionsxpress we're all about options trading.

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welcome back, everyone. let's set up what will be another unusual day on wall street. we have regular futures trading that takes place until 9:15 a.m.

eastern time today but the stock markets will be closed for a second consecutive day because of the storm. the bond market will also be closed today. we're talking about a lot of damage out there. new york city's transit system remains closed as do most of the bridges and tunnels. however, the lincoln tunnel which runs between new york and new jersey is open at this point, and the number of people without power continues to rise. there are about 8 million customers without power in the northeast because of this storm. utilities have amassed crews from other states but can't begin to repair until the storm clears. we've been hearing from governor christie of new jersey saying there are 2.4 million customers without power in new jersey, governor cuomo in new york saying there are more than 1.9 million customers without power and governor markell joined us and said there are about 400,000 people without power in his state. the organizers of one of new york city's premiere events say it will go on as scheduled. the new york city marathon is

set for sunday. mary whittenberg, the president, says there will be enough time to prepare the course. runners who can't make it to new york will get deferred entry into next year's race but still a lot of questions about just the situation right now. you've got high tide that is approaching at this point and the damage is not over at this point, nor is the destruction. >> a lot of city dwellers have not been able to train for the past couple of days. i talked to a marathoner who is talking about that. apparently not run too much the last week so some people are taking this as a little mini vacation. joe? hurricane sandy collapsed a crane working on what is slated to be manhattan's tallest condo skyscraper. cnbc's robert frank is in midtown new york, normally, robert, just because a crane disaster happened, we wouldn't send you, unless it was right outside a $90 million condo, which is being constructed and

hence, that's the correlation that i figured out. that's why we have you on this beat, right? >> reporter: exactly. where there are wealthy i'm there, and it's interesting a meeting has just started behind me. the oem, office of emergency management, the fire department, the building engineer, the crane operator, they're all meeting behind this fire truck to figure out how they're going to get this crane boom secure or down. if we take a look i was just talking to a building engineer who said that boom that's hanging off is more than 30 tons, so that's a seven-story piece of steel that's more than 30 tons, could be a very bad situation if it fell. now even though there's not much wind anymore it's still swaying, still some risk there. mayor bloomberg yesterday was quick not to assign blame, pointing out that it could have been just a freak gust of wind, perhaps 95 miles an hour around 2:00 yesterday that caused the boom of that crane to swing over the cab and to dangle over the

side. as you mentioned, this is one of the most high profile buildings in new york city, the tallest condo building and one of the priceiest with two units in the building going for $90 million. one of the buyers there was cylus cao, the hong kong billionaire who took michael coors public. i'm sure he and the other owners are watching closely to see what happens. >> robert, thanks. we'll be -- when is that, how long will it take, any idea yet? >> reporter: well, here's the thing. unless the fire department has superheroes on their staff what they probably have to do is get another crane, believe it or not to take and rescue that crane and the question is how long it would take for them to erect another crane tall enough to rescue this one. that's the only scenario i'm hearing that's realistic, tieing it down, securing it is one thing but dismantling it and getting it down will take another crane. that's going to be days, perhaps

even weeks. >> that's unbelievable. >> wow. >> were we talking to you, did you hear us talking about superheroes as well robert? >> reporter: i did. i heard you and andrew talking about that before. i think that's the best plan. >> we live in a surreal day and age where we've seen only time i'm familiar with this is in movies and there was a crane in sp spider-man, anyway, this is serious and how do you tether this thing? it's held up this long. you don't want it to fall now. >> at least you can evacuate the area and clear the streets. >> seems like you could, i don't know, pull it over and latch it to what it's -- but then the whole crane might fall not just the part that's dangling. >> robert, are you gone? >> reporter: i'm still here, i think. >> i wanted to ask you about 57th street. i was just thinking about that big building also on 57th where henry kravis, leon black from

apollo, virtually every private equity firm in the country, the big ones are all on that street along with a number of high profile wall street companies. >> reporter: exactly, andrew, that's a good point. i'm told all those buildings were evacuated. nobody is going to go in there today, i doubt they were going to go into the office anyway. the park and meridian hotel, a high profile hotel on this street they were evacuated yesterday, all of the guests had to find other hotel rooms last night so this is a very important sort of thoroughfare, as you point out commercially and for tourists in midtown manhattan that had to be totally cleared. no one yet is being allowed back in. >> robert, thanks for that. we're going to move on and talk about markets. the markets are not open yet but we are going to get an update on what rick santelli thinks may be happening from the cme in chicago. rick, the kr, me is open or at least the futures markets are open for now. is there anything we can take away from what's going on? >> reporter: well, i think there's a couple of things we can look at where the futures

prices are trading, for example, on the fixed income markets, the tens and 30s and get a sense that interest rates if they were open just predicated on that pricing would be basically unchanged to a little bit lower in yield, which is exactly what we're seeing in the ten-year boon for example, hovering around high 140s, roughly a two-week low yield, it would be the same in the states. as far as the s&ps or the dow futures, they're slightly lower, about 30 points in the dow, about 1.25 on the s&ps. so it gives you an idea of how we trade but of course that feeling of price activity does not include the masses and aggregate trading and of course we know that could influence prices more dramatically. i think at least it does give us a sense and we can look at the foreign exchange markets which obviously are operating around the world, even though they're impacted, and we see that the euro currency cash is hovering

around 123.6, outside of recent ranges of any aggressive tendency, around $79.3 in dollar versus the yen. we're lucky, we have employment data the at the end of the week, the end of the month which is important for certain tipypes o institutional funds and their activities. all in all if we can get most markets up and running close to full capacity before the employment data at the end of the week and of course the election, the employment data we'll be okay. lot of questions around here. chicago exchanges have off-sites f chicago like it did in the early '90s had a river flood, they have areas many, many miles away where they can function and of course this is going to be one of the issues i'm sure new york is going to have to reckon with is not the notion. we understand how horrible

transportation can be, but why not have a disaster recovery site three states away or four states away. these are issues that are being whispered down here. >> rick, we talked about that a little bit with bob pisani yesterday. they used to have a second site in brooklyn, not several states away but they used to have that backup site there. i guess it was taken down when they had the arca site up and running, that was supposed to take things over. they're testing that today and maybe that gives them another opportunity at this, but it is a good question, kind of wondered yesterday why they got rid of the brooklyn backup site. >> reporter: i think especially when you see how much accommodation the industry has had for the hft people and their special server requirements, i'm sure it's a question of money and whether it's an exchange or banks down the road or large institutions we deal with from a credit standpoint, i think a big discussion should ensue after this as to is it a financial

situation, or these exchanges not as profitable as they once will to build the coffers, and i think the bank industries and other industries were tied to where the electronics should be able to be a backup and i think we should learn something from this experience. >> rick, i think part of the problem in this case was getting employees to a site, to any site frankly aening lo the east coast over the past 48 hours would be difficult. i was going to ask you in terms of the traders in chicago you're spending time with, are people working all day, trading on different markets? are people going home? how does it work? >> reporter: people down here want to work all day and the exchange looks like it's going to have regular hours outside of the equity indices which are going to close at 9:15. yes, international markets spreads, a lot of things are open but of course it's very difficult especially with very u.s.-centric issues like

employment, like elections, but there are relative value trades being put on in other sovereigns for example and other currencies. >> rick, we're going to leave it there. thank you so much this morning. when we come back, we will get an update on the widespread power outages across the northeast, we'll talk to the president of pse&g right after this.

welcome back to "squawk box." this morning take a look at futures right now, thinly traded

but nonetheless red arrows across the board, dow off 17 points, s&p 500 marginal and nasdaq off as well. jackie deangelis joins with us more. >> 60 million people have felt the impact of hurricane sandy and power outages certainly one of the big issues this morning. hundreds of thousands of new yorkers and an estimated 7.8 million people all together across the east are struggling with these outages. new york city's utility company says it could be several days to a week before residents who lost power during the superstorm get their life back. meantime, coned says 670,000 customers are without power in new york city and westchester and a customer is defined as an individual meter so the number of actual people affected are likely highler. here in new jersey 2.8 million people in the dark and in connecticut about 625,000.

the goal of course is to try to assess the total damage caused by yesterday's massive storm and not the power issues. it's a little too early to put a definitive number on it but insurance experts are saying sandy could cost between $5 billion and $10 billion in insured losses, the fifth most expensive hurricane in u.s. history. katrina of course at the top of the list and those numbers don't include losses from flooding. analysts are saying sandy could cause up to $20 billion in economic losses. the storm packed 80-mile-per-hour winds and hurled unprecedented 13-foot surges of sea water at new york city, flooding the tunnels, subway stations, the electrical system that powers wall street as well and at least 16 u.s. deaths have been blamed on the storm on the east coast and sandy killed 69 people in the caribbean before making its way up to the atlantic. >> jackie, we talked to people yesterday talking about the $10 billion to $20 billion and the potential losses. how do they figure this stuff

out? reporters say we have to wait for first light and get an assessment of the damage. >> that's a great question. i was talking to someone at johns hop kins they look at past storms and basically estimating. that's all they can do until they have a better sense of what's happening. >> dennis gartman we talked to him earlier and said the estimates come in low are than expected. seems like the storm surge was so much worse than people anticipated. >> that's a good point, looking at past storms as well katrina is obviously one that's on the radar. they are able to pinpoint a little bit better than they have in the past and get a better sense of what's going on. we have to look at the specific states, what people are dealing with, what the flood also damage is going to be because that's going to change the number materially as well. >> we spoke with one analyst, an insurance analyst who suggested in this situation maybe half of the losses are uninsured losses because flood damage would be so much of the losses that come in, and flood damage isn't covered by regular homeowners' insurance. >> exactly right. i was talking to business owners

in the local community here saying the same thing. at the end of the day, everyone is in the same boat, one person was telling me we're just going to close our eyes and hope for the best. we're all in this together. >> jackie, thank you very much. coming up, more on the damage from sandy. we're going to bring you a live report from new york and right now, you're looking at me but now you're looking at the a live shot of snowshoe, west virginia. >> appropriately named today. >> i skied there, actually, and must be, you know, one place maybe they're glad they got all the storm here because they have a lot of snow, as we head to break look at u.s. equity futures. sometimes investing opportunities are hard to spot. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason

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welcome back to "squawk box," the futures right now have been, i don't know, liquid, a little bit of trading going on, been down 17, now town 16 or so, and you can see that's if you need to know that it's down 0.12% on the dow. >> future also continue trading until 9:15 this morning. at this point the nyse and the

nasdaq will be open for business tomorrow. there's a question about what exactly that means. the nyse talked about how if it's not able to open its trading floor it would be trading electronically and they are testing the arca system later this morning, the test taking place from 9:30 a.m. until noon today and that's why they'll be running through the paces making sure everything still works. jack jackie deangelis was talking about the number of people without power, over 8 million customers without power, more than 8 million people because a customer is counted as anyone who has a box. many people living in the houses so that's why we're not clear the numbers on that point. for more on the power outages we are joined by the "squawk" u.s. in line by paul rosengren, spokesman for new jersey's pse&g. the governor is saying in new jersey alone there are 2.4 million customers without power. can you tell us about what you've seen overnight? >> yeah, we have 1.2 million

customers so about half of that and basically comes in two different buckets. there are customers who have lost power because of the unprecedented storm surge that people have lost power because of flooding along the passaic rivers that flooded some of our substations. that has about a half a million people who are out. and the other 700,000 are people who lost power because of high winds that knocked down wires and trees. we do have different approaches getting both back but we're beginning to work vigorously beginning to restore power to some of our customers. >> so at this point the winds have died down i guess to places you're really work iing on woul be starting to get to the people who have lost the power lines from overhead? >> that's correct. so we had for the first time ever we called in people before the storm to come in and overnight here in new jersey people from as far away as texas and quebec, canada, and they are stocked, their trucks are stocked, they're rested, ready to hit the roads. in most of the area where the winds have died down enough

we're beginning to deploy those trucks and we'll have people out working today aggressively trying to restore that. in other places we have to wait for the waters to recede to get a better sense what we're dealing with. >> i saw a tweet today, someone tweeting us in new jersey, there's one customer, a power line guy who can go out for every 1,000 customers. you've brought in additional people. they were suggesting that you could be looking at a week or longer without power. does that sound accurate? >> well, some people will probably be a week or longer. we hope too much the bulk of that before then but we're still just getting out and seeing the extent of the damage ourselves and doing an assessment throughout the whole system. it takes a couple days to drive up, doesn't it, paul? last time i think we had guys from florida. >> well, we had them it drive up beforehand this time. so they were spending the night here last night, so they are ready to go and we've begun to deploy them out in the field.

>> i can't remember -- they were unbelievably great, these guys that you had. they're getting yelled at by a lot of people that, you know, if it's been a week, they're actually getting yelled at. they're working 18 hours a day. >> well, we certainly urge our customers to be respectful because these people are away from home, working 16 hours in tough conditions can. people we're really proud to help us just as we help them when they have problems. >> after eight days, i don't know -- i didn't yell at the guy but he thought it was weird when i jumped into his lap and wrapped my legs around him and i was like kissing him and stuff. >> that might be a little bit overboard but we appreciate the sentiment. >> we had a georgia power guy. they were in rooms and we didn't want to charge them. they were the greatest guys in the world. just a year ago. it was last year for irene. georgia power came up and as many rooms as we can give you. done, done. are you kidding? you deserve everything you can get. >> paul, how does this match up

with what you saw with irene last year? it's still a little early to tell. >> oh, no, it's not too early to tell. this is the worst storm in pse&g's history. we have more customers out and it's because of the two simultaneous events that both would have been by themselves may injujor problems but it is biggest incident ever to happen in our service territory. >> all right, paul, i want to thank you very much for your help and your assistance this morning. we wish you the best of luck with all the employees you have out there trying to get things back in shape today. >> appreciate the good words. >> jim cramer joins us now on set. i don't know what i would pay. i know what viewers would pay. andrew and you, a candlelit dinner last night for an hour. >> he's a beer guy. i had a terrific -- >> you could auction this off. i hope you paid for everything. >> there were no lights. >> that's what i'm saying, a candlelight din wer cramer. >> it would have been romantic

if "the new york times" weren't constant constantly calling working on his column this morning. >> if you're going to have sushi in the dark, isn't there that one kind of fish -- >> what? >> at that point the menu was limited to alcohol. >> don't eat the fish when the power is out. >> no. and you can't see it. it's a mistake and you can't cut it without cutting your fingers. he can pound them. andrew can pound them. >> that's not true. >> he had two beers right in a row. i couldn't believe it. >> two in a row. >> i appreciate that. >> did you see apple today? what do you make of that? >> when someone makes a mistake, we know steve jobs used to make them pay. it was a while before someone had to pay for google maps but they did. a while before someone had to pay for shortened apple in our stores like the one in the mall. it looks like the culprits are gone and the people who look

really good are moving up. >> do you think, johnny ives will move up. >> loved. >> he is the industrial designer who does typically the outsides of these things. >> he hated this. this squared off -- >> now he's going to start overseeing what they're calling some pieces of the interface, the software interface. does that make sense? is. >> one of the things that's amazing about jobs, a liberal arts guy who was an engineer basically. and what he liked to do is say substance sometimes has to take a back seat to style because once you get the style right, then we can get a lot of this right. i don't think this is so wrong. this man is revered internally and we aeroall this stuff about who is hated at apple. you make a mistake, google maps, if you go over all the history of the products that apple introduced, anybody who made a mistake, sayonara. >> of course not.

all these analysts say even though he was a demigod, they didn't want him around one way or the other. >> he screwed up. this is a take no prisoners outfit. >> do you own a generator or any sto stock? >> no, i wish i did. >> you have no power? >> i had power last night. >> you did? >> power last night. our inn had power, too. >> it roared into action. it worked. >> natural gas. >> incredible. >> okay. we're going to see you at 9:00 a.m. more on the damage from the superstorm sandy. another live report next. we're waiting for new york city mayor michael bloomberg to give us an update. originally he was scheduled to talk at 9:00 a.m. it's been pushed back to 9:45 a.m. we'll bring that you as well. [ male announcer ] eligible for medicare?

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welcome back, everybody. let's get the you up to speed on the latest information from new york city. the transit system remains closed as do most of the bridges and tunnels. the lincoln tunnel which runs between new jersey and new york is now open. and i believe one of the bridges may be about to open as well, new york city mayor michael bloomberg was expected to give a news conference at 9:00 a.m. that'see